Credit Rating Agency


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.

Credit Rating Agency

A company that provides investors with assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. A high rating indicates low risk and may therefore encourage investors to buy a security. Additionally, banks may only invest in securities with a high rating from two or more credit rating agencies. The SEC recognizes 10 firms as credit rating agencies; Fitch, S&P, and Moody's are the three most prominent. However, the methods of credit ratings agencies have been subject to criticism. For example, most agencies gave high-risk mortgage-backed securities top ratings until they defaulted at the collapse of the housing bubble.
References in periodicals archive ?
FH is one of the very few private sector corporates in the GCC to have secured an investment grade rating from a reputed international credit rating agency.
According to the Credit Rating Agency Regulation of Nepal, firms planning to issue ordinary shares, bonds, debentures, and preference shares valued over Rs 30 million must be rated by a rating agency.
When Britain was taken off negative outlook by the Standard and Poor's credit rating agency in October 2010, following figures showing 0.
credit rating agency Standard & Poor's Ratings Services will cut its long-term sovereign ratings of France and some other eurozone countries later Friday, market analysts said.
For example, if a company is considering acquiring a competitor to increase its market share and service offering it could ask a credit rating agency to carry out a "scenario assessment".
The credit rating agency, which issues credit ratings for the debt of
When a credit rating agency is invited to rate takaful and retakaful insurance--which is happening with increasing regularity as their numbers grow--it has to consider the practical implications for its analysis of this Shariah-compliant concept of insurance.
Riyadh, 28 Aug: Saudi Telecom maintained its rating degree (A +), which is assigned by the international credit rating agency Inc.
Credit rating agency Fitch reviewed Icelandic banks in the early part of 2008.
The credit rating agency said Goldman has been Wall Street's profit leader for several years and has very strong liquidity, but that its emphasis on trading and "aggressive" risk appetite expose it to potential for "major missteps.
Our Committee on Corporate Finance (CCF) was an early and forceful advocate of the Credit Rating Agency Reform Act of 2006.
According to credit rating agency Fitch, so-called structured finance dropped by almost half to $3.